About the acquisition
The above chart shows key details of Envision Healthcare’s agreement with KKR. On June 11, Envision entered into a definitive acquisition agreement with KKR. Under the terms of the agreement, KKR will acquire all of Envision’s outstanding common stock at $46 per share in an all-cash transaction worth ~$9.9 billion. KKR has offered a 32% premium on Envision stock’s volume-weighted average price on November 1. The investments are to be made primarily through the KKR Americas Fund XII.
The valuation represents ~10.9x its trailing 12-month adjusted EBITDA, or ~10.1x of its anticipated adjusted EBITDA this year. The transaction is expected to be completed by Q4 2018, subject to customary closing conditions and regulatory approvals. Envision is to be converted into a private company, and its common stock will not be traded on the New York Stock Exchange once the deal is completed.
Healthcare service provider Envision Healthcare delivers physician, hospitalist, radiology, anesthesiology, and children’s services to over 1,800 clinical departments. Envision owns 261 surgery centers, one surgical hospital, and orthopedics, gastroenterology, and ophthalmology facilities.
Global investment company KKR manages multiple alternative asset classes, and its businesses include private equity, hedge funds, real estate, healthcare, energy, and infrastructure. The iShares Global Healthcare ETF (IXJ) invests 0.1% of its total holdings in Envision Healthcare, 5.1% in UnitedHealth Group (UNH), and 3.1% in Roche (RHHBY).